Rent Tax Credit

Kotek Besar

Quick question,

In the case of a married couple, <55 years of age, how much Rent Tax Credit can be claimed?

Here it says €800.
Here it says €4000.

Why are there two figures? Which one is correct?

If everyone gets a PAYE tax credit of €1830 each, and married persons get €3660 to share between them, doesn't an additional *whopping* €4000 just for being house renters seem a bit.. excessive? Or am I missing something?

dbran

Hi

The answer is both are correct.

The total gross rent allowed is capped at 4000.

It is allowed at the standard rate of 20%

So the tax credit involved is 4000x20% = 800

Hope this helps

dbran

Kotek Besar

Ah, that make sense!

So, my wife and I are collectively entitled to tax credits as follows:

PAYE her: 1830
PAYE me: 1830
MPTC: 3660
Rent: 800
Bins: 80

= €8200 tax credits between us.

Does this mean that the first €8200 of PAYE tax on our collective income we don't have to pay, and any PAYE tax over €8200 we do have to pay?

Sorry if I appear thick.

dbran

yes that is correct

efb

It's means after your tax amount has been calculated the tax credits are subtracted from that:

eg: income 3000
SRCOP 1500

1500 @ 41% 610
1500 @ 20% 300
less
monthly credit (680)

=total tax due 230

Kotek Besar

Thanks folks!